Hiring a contractor in Maryland: check, red flags, complaints

Red flags when hiring

• No MHIC license number in their ad or on their vehicle. Both can lead to fines. (source: COMAR 09.08.06.02 (opens in a new tab))
• A contractor who sells or does home improvement through an unlicensed person. (source: COMAR 09.08.06.02 (opens in a new tab))
• Someone who is not MHIC-licensed offering to contract with you directly. (source: Maryland Home Improvement Commission (opens in a new tab))

Full checklist: how to check a contractor before you hire

Guaranty Fund (homeowner protection)

• The Guaranty Fund pays homeowners for actual losses from poor or unfinished work by licensed contractors, up to $30,000 per claim. (source: Maryland Home Improvement Commission (opens in a new tab))
• If claims against one contractor total more than $250,000, payouts are pro-rated. (source: Maryland Home Improvement Commission (opens in a new tab))

Salespeople

• Home improvement salespeople need an MHIC salesperson license and can represent up to 2 contractors. (source: MHIC license requirements (opens in a new tab))

Penalties

• Unlicensed home improvement is a misdemeanor: up to $1,000 and/or 6 months for a first offense; up to $5,000 and/or 2 years after that. (source: Maryland Business Regulation 8-601 (opens in a new tab))
• Civil citations include $100 (then $300) for no license number in an ad, $300 ($1,000) for a false ad, and $1,500 ($5,000) for working with or through an unlicensed person. (source: COMAR 09.08.06.02 (opens in a new tab))

How to file a complaint

• Complete and sign a written MHIC complaint form (available online). (source: MHIC complaint FAQ (opens in a new tab))